Prosus Writes Off Entire $500 Mn Byju's Stake

Prosus Writes Off Entire $500 Mn Byju's Stake

Prosus, a Dutch investment firm, has written off the value of its 9.6% stake in Indian edtech company Byju's, citing a significant decrease in equity value and inadequate financial information. This move results in a recorded loss of approximately $493 million for Prosus. The write-off comes amid ongoing financial, legal, and operational issues faced by Byju's, including delayed employee salaries and looming debt.

The decision follows a series of valuation reductions over the past two years, with Prosus previously valuing its stake at $3 billion. The company had initially invested around $530 million in Byju's. This development coincides with legal disputes involving Byju's founder Byju Raveendran and other major investors, who have called for his ouster as CEO. Byju's has also been prohibited from proceeding with a second rights issue by the National Company Law Tribunal.

Other major investors, such as BlackRock and HSBC, have also expressed concerns about Byju's viability. Prosus' annual report highlights the lack of sufficient information on Byju's financial health and future outlook as a critical factor in its decision. Despite these challenges, Prosus remains optimistic about the potential for improved governance within Byju's.

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